Tax on out of court settlement on release of business rights


Brat (B.Com)     29 July 2015

Brat
B.Com 
 27 points

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My father passed away intestate and he was running a small construction proprietory business. As legal heirs we do not wish to continue the business and hence we transfered our rights to a civil contractor who was part of the business in the hope that he can continue the business.

I have now recieved a sum of 20 lakhs (via bank transaction) as out of court settlement for giving up my rights in the business as legal heir to my father's business.

 

What is my tax liability? Do we treat this as inheritance?




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